Mark Zoradi has been the CEO of Cinemark Holdings, Inc. (NYSE:CNK) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Mark Zoradi's Compensation Compare With Similar Sized Companies?
Our data indicates that Cinemark Holdings, Inc. is worth US$4.3b, and total annual CEO compensation was reported as US$5.2m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$1.0m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$5.1m.
So Mark Zoradi is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Cinemark Holdings has changed over time.
Is Cinemark Holdings, Inc. Growing?
Cinemark Holdings, Inc. has reduced its earnings per share by an average of 4.3% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 3.0% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Cinemark Holdings, Inc. Been A Good Investment?
Cinemark Holdings, Inc. has not done too badly by shareholders, with a total return of 3.3%, over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Mark Zoradi is paid around what is normal the leaders of comparable size companies.
We're not seeing great strides in earnings per share, and total returns were decent but not amazing in the last three years. We wouldn't say the CEO pay is too high, but one might argue that the company should improve returns to shareholders before increasing it. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Cinemark Holdings.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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